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Sex in San Diego
Old 06-30-2007, 08:21 PM   #1
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Sex in San Diego

Sorry -- now that I have your attention . All you savvy RE people, please help me.

It looks like the property I have in San Diego is finally going to sell. This is the first time I have sold RE w/o rolling the cash to other properties.

How will this be taxed? I know I can deduct my purchase price - can I deduct the real estate commission and other improvements that I made after initial purchase? Any other deductions?
This final dollar amount after allowed deductions will be taxed at 15% - correct?

The money from this sale is going to add to my bucket #1 (sorry you non bucketeers) and add to bucket # 3 -- very exciting .

Thanks in advance
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Old 06-30-2007, 08:39 PM   #2
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Is this your home residence that you lived in the 2 of the last 5 years? If so you might not owe any taxes at all. If it's investment property then you'l owe 15% on the gain and 25% on the depreciation recapture.

I've got an empty bucket you can dump the proceeds into as well. Just let me know.

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Originally Posted by Donzo View Post
Sorry -- now that I have your attention . All you savvy RE people, please help me.

It looks like the property I have in San Diego is finally going to sell. This is the first time I have sold RE w/o rolling the cash to other properties.

How will this be taxed? I know I can deduct my purchase price - can I deduct the real estate commission and other improvements that I made after initial purchase? Any other deductions?
This final dollar amount after allowed deductions will be taxed at 15% - correct?

The money from this sale is going to add to my bucket #1 (sorry you non bucketeers) and add to bucket # 3 -- very exciting .

Thanks in advance
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Old 06-30-2007, 10:50 PM   #3
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I'm doing the same exercise on Oahu:
Renting or selling the rental property

You may want to look at the IRS pubs dealing with selling a rental property, especially for calculating your basis and your depreciation recapture. A library copy of J.K. Lasser's "Your Income Tax" will also have a good chapter on the tax issues.

You'll also need to consider state tax and whatever nuisance locality taxes you may be subject to.

You mentioned rolling things over-- a 1031 is one method, but before 1997 there used to be a rollover method that allowed you to defer cap gains. If that's what you're referring to then you have to subtract those cap gains from your latest property's basis too.

And since you're doing this in San Diego (with or without sex), you'll probably have such outrageously high capital gains that you'll trigger AMT...
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Old 06-30-2007, 11:02 PM   #4
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I don't get the bucket reference. :confused:
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Old 07-01-2007, 08:04 AM   #5
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I don't get the bucket reference. :confused:
I assumed he meant it literally. If not, it still works! Because he can put some of that cash in a bucket at my place too
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Old 07-01-2007, 08:38 AM   #6
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Darn it, I'm outta buckets!!!! Going to the Depot, be right back. There's seems to be a shortage of people who will fill them for you!
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Old 07-02-2007, 09:55 AM   #7
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[quote=Arif;530997]Is this your home residence that you lived in the 2 of the last 5 years? If so you might not owe any taxes at all. If it's investment property then you'l owe 15% on the gain and 25% on the depreciation recapture.


No - never lived there full time - it was a weekend get away when I lived in S. CA (inland empire). Thanks for the feed back!
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Old 07-02-2007, 10:00 AM   #8
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You mentioned rolling things over-- a 1031 is one method, but before 1997 there used to be a rollover method that allowed you to defer cap gains. If that's what you're referring to then you have to subtract those cap gains from your latest property's basis too.

And since you're doing this in San Diego (with or without sex), you'll probably have such outrageously high capital gains that you'll trigger AMT...[/quote]

Yes, the 1031 is what I was referring to...and I'm afraid AMT will be in my 07. I may 1031 part of the procedes to minimize AMT. There are still some OK deals in N. CA. Thanks Nords
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Old 07-02-2007, 10:10 AM   #9
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I don't get the bucket reference. :confused:
I am referring to Ray Lucias buckets - it has been quite the controversy here. It breaks your portfolio into 3 buckets.

Search: Raymond J. Lucia Companies Inc
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Old 07-02-2007, 10:12 AM   #10
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Darn it, I'm outta buckets!!!! Going to the Depot, be right back. There's seems to be a shortage of people who will fill them for you!

I keep my bucket # 1 cleverly hidden under my bed.....don't tell anyone
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